DAR ES SALAAM: TANZANIA’S planned Liquefied Natural Gas (LNG) project in Lindi, valued at more than 70 tri/- is expected to become one of the country’s largest investments, creating jobs, attracting private capital and advancing the government’s Vision 2050.
The project, to be implemented by the Tanzania Petroleum Development Corporation (TPDC), is expected to begin later this year following ongoing negotiations with investors.It will commercialise more than 47 trillion cubic feet (TCF) of discovered natural gas reserves.
Speaking at the ongoing 50th Dar es Salaam International Trade Fair (DITF), TPDC Geologist, Samwel Magambo said the investment would have far-reaching economic benefits beyond the energy sector by stimulating demand for goods and services across the economy.
“This is one of the largest projects Tanzania has ever undertaken. It will create substantial employment opportunities and Tanzanians should prepare themselves to take advantage of the business and investment opportunities that will emerge,” he said.
Mr Magambo said negotiations with potential investors are continuing, with the government seeking an agreement that delivers mutual benefits while safeguarding national interests.
He said implementation of the project will be guided by Tanzania’s local content policy to ensure domestic companies and workers secure a significant share of procurement contracts, employment opportunities and specialised services generated by the investment.
“Our objective is to ensure that the income generated by the project remains within the country, circulates through the local economy and contributes to sustainable economic growth,” he said.
As part of preparations, TPDC has allocated more than 100bn/- in the current fiscal year to acquire three-dimensional (3D) seismic data, a critical stage that will provide detailed geological information to support exploration, reduce investment risk and identify commercially viable drilling locations.
According to Mr Magambo, the survey will strengthen the project’s technical foundation and improve prospects for future upstream investments.
The LNG project is expected to play a central role in implementing Vision 2050 by strengthening energy security, accelerating industrialisation, expanding local manufacturing and services, creating skilled employment and enhancing Tanzania’s competitiveness in regional and global energy markets.
The project is also expected to increase the availability of natural gas for domestic industries while generating export revenues from international LNG sales.